Triggers that Energize Potential Entrepreneurs: What We Know about University Students in Southern Ethiopia

Abstract

The purpose of this study was to identify factors that initiate potential entrepreneurs to follow through and engage in an entrepreneurial activity among university students located in Southern Ethiopia. The study employed a cross-sectional survey design where the questionnaire was the main data collection tool. Data were collected from 665 final year university students from five universities. Subjects were randomly selected from business and non-business oriented programs comprising of 18 departments. Descriptive statistics, factor analysis and Tobit regression model were the main methods used to analyze and present data. The study found key factors that energize potential entrepreneurs to include: perceived internal locus of control (p=.000), social connections (p=.000), gender (p=.000) and to lesser extent the desirability (idea attractiveness) (p=.069), and subjective norms or pressure from significant others (p=.108). Self-efficacy was found to have a negative effect but statistically significant (p=.004). On gender, the study concluded that female students have problems in seizing and working on entrepreneurial opportunities as compared to males. Besides, the decision to engage in an entrepreneurial activity could be far beyond an individual’s perception about their capabilities (self-efficacy); inner strength to deal with uncertainties or risk taking ability (internal locus of control), and the presence of strong social bridging ties which connect an individual to different resources were identified as the main factors that identify potential entrepreneurs from others.